SAP offers ASP for GST India

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The GST India administration will have two major players:

1. GST Suvidha Provider (GSP)

2. Application Service Provider (ASP)

Read more here Indian Tax Procedure Migration from TAXINJ to TAXINN

The following diagram shared by GST Network (GSTN) offers this clarity

Every GST registered entities must submit their Supply Invoices to GSTN via this
digital medium.Therefore, registered Vendors should also upload their Supply Invoices,
which will be the basis for determining Input Tax Credit (ITC). After accepting the
invoices from vendors, formal ITC will be available.

Note: The above rule can change be changed once the final IGST Act, CGST Act and
SGST Act are published and made available.

On the basis of data provided to GSTN, it is expected, that returns will be auto
populated and must be verified and accepted by GST registered entities.

Every interaction with GSTN will be via published APIs (Application Process
Interface). The ecosystem of GSPs is expected to provide a secure transfer of data to
GSTN and back, recording logs of transactions, and provide necessary audit trails and
reports to GSTN as desired.

These uploads and downloads will be facilitated by consuming APIs of GSTN through
a dedicated MPLS line or a VPN line.
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Further, there will be a charge for data upload of invoices and the returns. These details
are work in progress.

Difference between GSP and ASP

GSP (GST Suvidha Provider) is an organisation which will act as a channel of data
transfer from the Taxpayer and ASP to GST system at GSTN. The GSP will have an
agreement with GSTN, therefore will provide a secured access to GST System A

Whereas ASP (Application Service Provider) will provide a GST based data in a
specified format using the GST APIs exposed through GSP. A taxpayer can have
multiple ASPs with a condition that the cluster of data across all the ASPs should be
managed by the taxpayer.

Read more here Difference between TAXINJ and TAXINN in SAP

Division of Taxpayer
With respect to the GST ecosystem, taxpayers can be divided into following
three categories:

Taxpayers with standalone or networked systems that are not connected with the
Internet
Taxpayer with applications with API interfaces such as SAP, Oracle, Microsoft
ERP etc.
Taxpayer with applications that are in the cloud and can work in both offline and
online mode, well-defined API based architecture, and use latest technologies.

How SAP Offering ASP

SAP will be offering ASP not GSP. GSTN will enable API based consumption for data
transmission and communication with the help of GSPs Application Service Providers
(ASPs) in order to offer related value added services.

SAP will be an ASP and will make provisions to address the following:

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 Form / Report Details

GSTR-1 Outward Supplies Details

GSTR-2 Inward Supplies Details

GSTR-3 Monthly Return

GSTR-6 ISD Return

GSTR-7 TDS Return

GSTR-8 Annual Return

GSTR-9 Reconciliation Statement

GSTR-10 Final Return

Utility Tool Vendor Invoice credit reconciliation

Utility Tool Utilization Dashboard

Read more here SAP GST FAQ

The expectation is to deal with a large volume of data and we expect supply
invoices themselves to be ranging from 45,000 to above 6,00,000 invoices
on a monthly basis.
As a result the development will be offered on HANA Cloud Platform (HCP)
and on S/4 HANA.
Discussions with prospective GSPs are underway so that technical integration of
SAP ASP solution with GSP is technically feasible.

Note: The agreement to run daily transactions are: procure to pay, order to cash, stock
transfers and such will be handled as part of the regular legal change/agreement
offering.

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